LOUISVILLE, Ky. — Given the Southwest Airlines meltdown, social media posts are claiming other airlines are taking advantage of the situation and charging sky-high prices as people try to re-book.
University of Kentucky Economics Professor Mike Clark told WHAS11 the rise in other airline prices is a typical pattern given how much demand has shifted away from Southwest.
“What we’re basically seeing is a major supply disruption, and when that happens, there tends to be a shortage in a market. And in this case, we’re seeing that, and when there is a shortage in the market, prices tend to go up,” he said.
American and United Airlines have responded to their sky-high prices for some flights after passengers complained on social media.
Both airlines said they are capping prices but only in select cities, which explains why passengers here in Louisville still see high costs.
Clark says part of the issue could be other airlines adjusting for added costs and strains put on their end.
“They’re seeing people are willing to pay these higher prices, but they’re also having to look at ‘can we move our planes around, can we offer more flights;’ and it’s costly to do this, so they’re looking at the cost to be able to accommodate or basically pick up the slack from Southwest not being able to maintain its flights,” he said.
Clark added he would hesitate to consider this price gauging, saying it is supply and demand working as it’s supposed to given there is still plenty of competition in the market.
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